Iraq, China launch 'oil for reconstruction' agreement
Baghdad has forged a 20-year deal to supply Beijing with oil in exchange for Chinese investments in projects to repair Iraq's war-damaged infrastructure.
When Iraqi Prime Minister Adel Abdul Mahdi led a delegation to China in September, Baghdad and Beijing activated an "oil for reconstruction" and investment program. Under the arrangement, Chinese firms work in Iraq in exchange for 100,000 barrels per day.
Iraq has said it needs more than $88 billion to develop and mend its rickety infrastructure after three years of combating the Islamic State (IS).
Speaking to the press, Abdul Mahdi said that, including this new deal, about 20% of Iraq’s daily oil production is being exported to China.
"We agreed [with Beijing] to set up a joint investment fund, which the oil money will finance," he said, adding that Iraq requires that China not monopolize implementing projects inside Iraq but rather will work in cooperation with international firms.
